kottke.org posts about Square

When Starbucks builds the Square Directory into their apps and in-store Digital Network, it gives Square new visibility, driving more customers to opt-in to Square. And with nearly 7,000 Starbucks stores soon accepting Square, these new payers will be able to find your business (including coffeehouses) and pay with their name, building community and creating value.

Starbucks isn’t doing anything radical with its cashier / point of sale design / philosophy yet. There won’t be any pre-ordering drinks a block away, or paying anywhere in the cafe like you can at an Apple Store. Schultz says Starbucks has tried some of that and it’s “highly complicated.”

To summarize: after the deal, Apple will immediately become a giant payments company, with an installation base that is expected to encompass half of all mobile devices sold. The company will have the best local search abilities, far exceeding any existing recommendation engine. And due to its enormous reach, it will possess a payment system that merchants will line up to support.